Unemployment benefits in Texas won't last as long

By Patrick Danner :
June 19, 2012
: Updated: June 20, 2012 12:59am

The Texas Workforce Commission announced Tuesday that the maximum number of weeks of unemployment benefits will shrink to 60 from 73 starting July 8.

The change was triggered by the state's unemployment rate falling below a three-month average of 7 percent.

Regular unemployment benefits last up to 26 weeks. Once those are exhausted, qualified Texans can apply for emergency unemployment benefits.

Tier I emergency benefits last 20 weeks, followed by 14 weeks of Tier II benefits.

Currently, when those benefits have been exhausted, Texans can apply for Tier III emergency benefits, which provide for an additional 13 weeks. But that safety net is disappearing for anyone who exhausts Tier II benefits starting July 8.

But those who exhaust the Tier II benefits before July 7 still might be eligible for Tier III benefits.

The commission estimates that 22,453 people now collecting Tier II benefits will not be eligible for Tier III benefits.

Earlier in the year, a maximum of 99 weeks of unemployment benefits was available to those who qualified. But as Texas' job market has improved, the number of weeks available has fallen. In March, benefits were cut to a maximum of 86 weeks. In May, they were capped at 73.

The emergency benefits are set to expire at the end of this year. But the latest reduction comes at a time when the economic recovery has lost momentum, with the nation creating only 69,000 jobs last month. The country's unemployment rate rose to 8.2 percent in May.

Texas has fared better, with the state's jobless rate holding steady at 6.9 percent in May, as it added 12,500 nonfarm jobs.

“I understand what they're doing in trying to be fiscally prudent, and I'm all for that,” said Steve Nivin, a St. Mary's University economist. “But we're still in a recovery across the nation, even though Texas' unemployment rate is relatively low.

“I would like to see them wait a little bit more (and) give people time to adjust. But I understand the incentives in trying to get people back to work.”

About 30,522 people already receive Tier III benefits. Those individuals will not be affected by the change.

The commission said in a statement that it will send letters to affected individuals.